Frustrated With My Loan Mod Pursuit!

(9/30/2010) Latest Update: A few days after I posted the info below, I get a letter from Bank of America stating that my loan modification for a  “Home Affordable Modification” had been denied because:

“We service your loan on behalf of an investor or group of investors that has not given us the contractual authority to modify your loan under the Home Affordable Modification Program.”

Translation: “You’re still making your payments on time every month, so we’re not going to help you. We’re still gettin’ your money!

(So, I’m thinking they’ll start paying attention if I don’t make my payments. What do YOU think?)

So I call and ask why I’ve been given conflicting information, one day being asked for my YTD Profit & Loss Statement and a few days later being told I’m denied. Here’s what they tell me:

Bank: “We’ll transfer you to the Loan Default department.”

Me: “I’m not in default.”

Bank: “We’ll transfer you to the Eminent Default department.”

Me: “I’m not facing eminent default. I make my payments on time every month.”

Bank: (silence)

Me: “Hello?”

Bank: “Ma’am, I’m afraid we can’t help you.”

Me: “Why did you just tell me a few days ago that you need my year-to-date Profit & Loss Statement?”

Bank: “You can still provide that information to see if you’re eligible for a different modification program.”

Me: “Why didn’t you tell me that instead of sending me the denial letter?”

(For the first entries on my loan mod pursuit, CLICK HERE)

(9/27/2010) In mid-August, I finally sent in my loan modification package. Six weeks later, I heard nothing from the bank. So I called, only to find out that they need a year-to-date profit & loss statement for my business, since as a REALTOR, I’m self-employed.

So, if anyone out there has started your own loan modification, you’d better be relentless in calling the bank for status updates. They won’t call you.

7 thoughts on “Frustrated With My Loan Mod Pursuit!”

  1. Ann Thomas Seitz

    I always thought if you had money then you can get a loan (when you don’t really need money) but if you are broke you can’t (when you actually need the help)

    NOW come to find out you have to practically be a ward of the state, a complete write off before a helping hand is offered. This just galls.

    What a complete foolish run around. B of A employees have no discretion to actually listen to the customer, no ability to suit the customer’s needs, treat good customers like they don’t matter and are just small potatoes. Have you ever thought of taking all your business to a credit union? I’m as serious as a heart attack.

  2. Anna May

    What gets me is that there are people who ARE keeping their commitments to pay off their debts because they planned for rainy days, didn’t over-extend themselves and overall have been responsible with their spending.

    I can’t tell you how many times I’ve seen folks lose their homes after they’ve purchased brand new, expensive cars, electronics, other toys, etc. while other folks still drive their same old trusty automobiles while paying their mortgages on time as agreed.

    True, there are folks facing TRUE hardships who should be given a helping hand whenever possible.

    (sigh)

  3. linda bristow

    had a big fight with Wells Fargo, who did (I feel) bait and switch…..I’ve lost equity, told them that at the first meeting, two months later they deny my application due to ‘low equity’ to loan value…..I filed BBB complaint, and wrote to the head office, and filed with State of CA complaints….all WF did is offer me a $200 refund for appraisal…..too little/too late…

  4. Anna May

    In my opinion, the enticement of a loan mod is a way of them collecting information about you in case they need to collect defaulted debt later on.

  5. Gary V

    I received the same letter today from Bank of America. I am not sure what my options are. What do you plan on doing?

    I am in a similar boat…current, never been late. My rate is LIBOR +2.75% which to me seems predatory. All I am looking for is a fixed 30 year loan. What does it take to get it?

    Shoot me an email if you want to exchange some ideas…

  6. Anna May

    Gary, I’m going to put together my Profit & Loss statement and turn it in as they originally requested.

    If, however, you still have decent equity on the property and your income is conducive to qualifying for a refinance, that might be something to try. Have you yet?

    My husband and I visited Chase 2 weeks ago and the loan officer suggested that we wait a few more months until our income is more established. My husband started a new consulting business recently and needs to show a few more months of income in order for it to qualify for a refinance. My income also changed a bit earlier this year when my term on the City Council ended and my steady salary there stopped, leaving only my self-employment income.

    The guidelines keep changing for loan mods and even professionals in the real estate and lending industry struggle to keep up with it all. Many will agree that unless you’re late on payments or in default of the loan, nobody will be willing to help…

  7. Gary V

    Anna,

    Unfortunately I don’t have equity. The house is upside down by about 125k. I purchased it for $425k, with 80k down. Then took out a second for about 70k to build a pool. I suspect the house is worth under 300k now. This is disheartening, especially since I saw the appraisal at 675k when I took out my second.

    I am now considering going late, just to get some attention. But like many people, I have too much pride in my credit rating to “play the system” like that. It is unfortunate our system has come to this.

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